NRS 377B.170 Water
authority in larger counties required to enter into interlocal agreement to
provide distribution from infrastructure fund to certain cities, towns and
other public entities.

NRS 377B.180 Annual
report of city, town or other public entity in interlocal agreement with water
authority for distribution from infrastructure fund.

NRS 377B.190 Money
for payment of cost of project for which tax was imposed: Issuance of bonds or
other obligations; direct distribution from infrastructure fund; authority of
board of county commissioners or water authority.

NRS 377B.200 Covenant
or other provision to pledge and create lien upon tax proceeds, revenue
generated by project or proceeds of certain securities.

NRS 377B.210 Department
required to disregard tax in determining amount of security required for
payment of other sales and use taxes under certain circumstances.

_________

NRS 377B.010Definitions.As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 377B.020 to 377B.050, inclusive, have the meanings ascribed to
them in those sections.

1. Any devices and systems used in the
storage, treatment, control of odor, recycling and reclamation of municipal
sewage or industrial wastes of a liquid nature, including, without limitation,
outfall sewers, pumping, power and other equipment, and their appurtenances;

2. Extensions, improvements, remodeling,
additions and alterations of any device or system described in subsection 1;

3. Units essential to provide a reliable
recycled supply of water, such as standby treatment units and clear well
facilities; and

4. Land that is or will be an integral
part of the treatment process or is used for the ultimate disposal of residues
resulting from such treatment, including, without limitation, the acquisition
and improvement of wetlands that are designed and used for the discharge of
effluent.

NRS 377B.040“Water authority” defined.“Water
authority” means a water authority organized as a public agency or an entity
created by cooperative agreement pursuant to chapter
277 of NRS whose members at the time of formation included the three
largest retail water purveyors in the county and which is responsible for the
acquisition, treatment and delivery of water and water resources on a wholesale
basis to utilities, governmental agencies and entities and other large
customers.

1. The board of county commissioners of
any county may by ordinance, but not as in a case of emergency, impose a tax
for infrastructure pursuant to this section and NRS
377B.110.

2. An ordinance enacted pursuant to this
chapter may not become effective before a question concerning the imposition of
the tax is approved by a two-thirds majority of the members of the board of
county commissioners. Any proposal to increase the rate of the tax or change
the previously approved uses for the proceeds of the tax must be approved by a
two-thirds majority of the members of the board of county commissioners. The
board of county commissioners shall not change a previously approved use for
the proceeds of the tax to a use that is not authorized for that county
pursuant to NRS 377B.160.

3. An ordinance enacted pursuant to this
section must:

(a) Specify the date on which the tax must first
be imposed or on which an increase in the rate of the tax becomes effective,
which must occur on the first day of the first month of the next calendar quarter
that is at least 120 days after the date on which a two-thirds majority of the
board of county commissioners approved the question.

(b) In a county whose population is 700,000 or
more, provide for the cessation of the tax not later than:

(1) The last day of the month in which the
Department determines that the total sum collected since the tax was first
imposed, exclusive of any penalties and interest, exceeds $2.3 billion; or

(2) June 30, 2025,

Ę whichever
occurs earlier.

4. Notwithstanding the provisions of an
ordinance described in subsection 3, in a county whose population is 700,000 or
more, the tax may continue to be imposed after the date set forth in the
ordinance for the cessation of the tax if the board of county commissioners
determines by an affirmative vote of at least two-thirds of its members that
the cessation of the tax is not advisable.

5. The board of county commissioners in a
county whose population is 700,000 or more and in which a water authority
exists shall review the necessity for the continued imposition of the tax
authorized pursuant to this chapter at least once every 10 years.

6. Before enacting an ordinance pursuant
to this chapter, the board of county commissioners shall hold a public hearing
regarding the imposition of a tax for infrastructure. In a county whose
population is 700,000 or more and in which a water authority exists, the water
authority shall also hold a public hearing regarding the tax for
infrastructure. Notice of the time and place of each hearing must be:

(a) Published in a newspaper of general
circulation in the county at least once a week for the 2 consecutive weeks
immediately preceding the date of the hearing. Such notice must be a display
advertisement of not less than 3 inches by 5 inches.

(b) Posted at the building in which the meeting
is to be held and at not less than three other separate, prominent places
within the county at least 2 weeks before the date of the hearing.

7. Before enacting an ordinance pursuant
to this chapter, the board of county commissioners of a county whose population
is less than 700,000 or a county whose population is 700,000 or more and in
which no water authority exists, shall develop a plan for the expenditure of
the proceeds of a tax imposed pursuant to this chapter for the purposes set
forth in NRS 377B.160. The plan may include a
regional project for which two or more such counties have entered into an
interlocal agreement to expend jointly all or a portion of the proceeds of a
tax imposed in each county pursuant to this chapter. Such a plan must include,
without limitation, the date on which the plan expires, a description of each
proposed project, the method of financing each project and the costs related to
each project. Before adopting a plan pursuant to this subsection, the board of
county commissioners of a county in which a regional planning commission has
been established pursuant to NRS 278.0262
shall transmit to the regional planning commission a list of the proposed
projects for which a tax for infrastructure may be imposed. The regional
planning commission shall hold a public hearing at which it shall rank each
project in relative priority. The regional planning commission shall transmit
its rankings to the board of county commissioners. The recommendations of the
regional planning commission regarding the priority of the proposed projects
are not binding on the board of county commissioners. The board of county
commissioners shall hold at least one public hearing on the plan. Notice of the
time and place of the hearing must be provided in the manner set forth in
subsection 6. The plan must be approved by the board of county commissioners at
a public hearing. Subject to the provisions of subsection 8, on or before the
date on which a plan expires, the board of county commissioners shall determine
whether a necessity exists for the continued imposition of the tax. If the
board determines that such a necessity does not exist, the board shall repeal
the ordinance that enacted the tax. If the board of county commissioners
determines that the tax must be continued for a purpose set forth in NRS 377B.160, the board shall adopt, in the manner
prescribed in this subsection, a new plan for the expenditure of the proceeds
of the tax for such a purpose.

8. No ordinance imposing a tax which is
enacted pursuant to this chapter may be repealed or amended or otherwise
directly or indirectly modified in such a manner as to impair any outstanding
bonds or other obligations which are payable from or secured by a pledge of a
tax enacted pursuant to this chapter until those bonds or other obligations
have been discharged in full.

NRS 377B.110Mandatory provisions of ordinance imposing tax.An ordinance enacted pursuant to this chapter
must include provisions in substance as follows:

1. A provision imposing a tax upon
retailers at the rate of not more than:

(a) In a county whose population is 100,000 or
more but less than 700,000, one-eighth of 1 percent; or

(b) In all other counties, one-quarter of 1
percent,

Ę of the gross
receipts of any retailer from the sale of all tangible personal property sold
at retail, or stored, used or otherwise consumed, in the county.

2. Provisions substantially identical to
those contained in chapter 374 of NRS,
insofar as applicable.

3. A provision that all amendments to chapter 374 of NRS after the date of enactment
of the ordinance, not inconsistent with this chapter, automatically become a
part of an ordinance enacted pursuant to this chapter.

4. A provision stating the specific
purpose for which the proceeds of the tax must be expended.

5. A provision that the county shall
contract before the effective date of the ordinance with the Department to
perform all functions incident to the administration or operation of the tax in
the county.

6. A provision that a purchaser is
entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the
tax required to be paid that is attributable to the tax imposed upon the sale
of, and the storage, use or other consumption in a county of, tangible personal
property used for the performance of a written contract:

(a) Entered into on or before the effective date
of the tax or the increase in the tax; or

(b) For the construction of an improvement to
real property for which a binding bid was submitted before the effective date
of the tax or the increase in the tax if the bid was afterward accepted,

Ę if, under
the terms of the contract or bid, the contract price or bid amount cannot be
adjusted to reflect the imposition of the tax or the increase in the tax.

NRS 377B.120Mandatory provision of ordinance amending ordinance imposing
tax.An ordinance amending the
ordinance enacted pursuant to NRS 377B.100 must
include a provision in substance that the county shall amend the contract made
pursuant to subsection 5 of NRS 377B.110 by a
contract made between the county and the State acting by and through the
Department before the effective date of the amendatory taxing ordinance, unless
the county determines with the written concurrence of the Department that no
such amendment of the contract is necessary or desirable.

NRS 377B.130Remittances to Department; deposit in Sales and Use Tax Account;
distribution.

1. All fees, taxes, interest and penalties
imposed and all amounts of tax required to be paid to the counties pursuant to
this chapter must be paid to the Department in the form of remittances payable
to the Department.

2. The Department shall deposit the
payments with the State Treasurer for credit to the Sales and Use Tax Account
in the State General Fund.

3. The State Controller, acting upon the
collection data furnished by the Department, shall monthly:

(a) Transfer from the Sales and Use Tax Account
to the appropriate account in the State General Fund 1.75 percent of all fees,
taxes, interest and penalties collected pursuant to this chapter during the
preceding month as compensation to the State for the cost of collecting the
taxes.

(b) Determine for each county an amount of money
equal to any fees, taxes, interest and penalties collected in or for that
county pursuant to this chapter during the preceding month, less the amount
transferred to the State General Fund pursuant to paragraph (a).

(c) Transfer the amount determined for each
county to the Intergovernmental Fund and remit the money:

(1) In each county whose population is
700,000 or more and in which a water authority exists, to the treasurer for the
water authority.

(2) In each county whose population is
less than 700,000 or each county whose population is 700,000 or more and in
which no water authority exists, to the county treasurer.

1. A county whose population is less than
700,000 or a county whose population is 700,000 or more and in which no water
authority exists; or

2. The water authority in a county whose
population is 700,000 or more and in which a water authority exists,

Ę that is
entitled thereto, but no such redistribution may be made as to amounts
originally distributed more than 6 months before the date on which the
Department obtains knowledge of the improper distribution.

1. In a county whose population is less
than 700,000 or a county whose population is 700,000 or more and in which no
water authority exists, the county treasurer shall deposit the money received
from the State Controller pursuant to NRS 377B.130
in the county treasury for credit to a fund to be known as the infrastructure
fund. The infrastructure fund must be accounted for as a separate fund and not
as a part of any other fund. The money for each project included in the plan
adopted pursuant to subsection 7 of NRS 377B.100
must be accounted for separately in the fund.

2. In a county whose population is 700,000
or more and in which a water authority exists, the water authority shall
deposit the money received from the State Controller pursuant to NRS 377B.130 in a separate account of the water
authority to be known as the infrastructure fund. This fund must be accounted
for as a separate fund and not as part of any other fund of the water
authority.

NRS 377B.160Infrastructure fund: Expenditure of principal, interest and
income.The money in the infrastructure
fund, including interest and any other income from the fund:

1. In a county whose population is 700,000
or more, must only be expended by the water authority, distributed by the water
authority to its members, distributed by the water authority pursuant to NRS 377B.170 to a city or town located in the county
whose territory is not within the boundaries of the area served by the water
authority or to a public entity in the county which provides water or
wastewater services and which is not a member of the water authority or, if no
water authority exists in the county, expended by the board of county
commissioners for:

(a) The acquisition, establishment, construction,
improvement or equipping of water and wastewater facilities;

(b) The payment of principal and interest on
notes, bonds or other securities issued to provide money for the cost of
projects described in paragraph (a); or

(c) Any combination of those purposes.

Ę The board of
county commissioners may only expend money from the infrastructure fund
pursuant to this subsection in the manner set forth in the plan adopted
pursuant to subsection 7 of NRS 377B.100.

2. In a county whose population is 100,000
or more but less than 700,000, must only be expended by the board of county
commissioners in the manner set forth in the plan adopted pursuant to subsection
7 of NRS 377B.100 for:

(a) The acquisition, establishment, construction
or expansion of:

(1) Projects for the management of
floodplains or the prevention of floods; or

(2) Facilities relating to public safety;

(b) The payment of principal and interest on
notes, bonds or other securities issued to provide money for the cost of
projects described in paragraph (a);

(c) The ongoing expenses of operation and
maintenance of projects described in subparagraph (1) of paragraph (a), if such
projects were included in a plan adopted by the board of county commissioners
pursuant to subsection 7 of NRS 377B.100 before January
1, 2003;

(d) Any program to provide financial assistance
to owners of public and private property in areas likely to be flooded in order
to make such property resistant to flood damage that is established pursuant to
NRS 244.3653; or

(e) Any combination of those purposes.

3. In a county whose population is less
than 100,000, must only be expended by the board of county commissioners in the
manner set forth in the plan adopted pursuant to subsection 7 of NRS 377B.100 for:

(f) The acquisition, establishment, construction,
expansion, improvement or equipping of facilities relating to public safety or
to cultural and recreational or judicial functions;

(g) The payment of principal and interest on
notes, bonds or other securities issued to provide money for the cost of
projects, facilities and activities described in paragraphs (a) to (f),
inclusive; or

NRS 377B.170Water authority in larger counties required to enter into
interlocal agreement to provide distribution from infrastructure fund to
certain cities, towns and other public entities.

1. In a county whose population is 700,000
or more and in which a water authority exists, the water authority shall enter
into an interlocal agreement with a city or town located in the county whose
territory is not within the boundaries of the area served by the water
authority or with a public entity in the county which provides water or
wastewater services and which is not a member of the water authority to provide
a distribution from the infrastructure fund of the water authority to the city,
town or public entity after the city, town or public entity has filed with the
water authority a detailed plan for acquiring, establishing, constructing,
improving or equipping, or any combination thereof, a water or wastewater
facility.

2. Such a city, town or public entity may
request annually from the infrastructure fund of the water authority an amount
of the proceeds of the tax for infrastructure received annually by the water
authority that is equal to the proportion that the assessed valuation of
taxable property within the boundaries of the city or town or the area served
by the public entity, except any assessed valuation attributable to the net
proceeds of minerals, bears to the total assessed valuation of taxable property
within the county, except any assessed valuation attributable to the net
proceeds of minerals. If the boundaries of such a city or town overlap with the
boundaries of a public entity in such a county which provides water or
wastewater services and which is not a member of the water authority, the water
authority shall apportion equally between the city or town and the public
entity the distribution from the infrastructure fund attributable to the
assessed valuation in the area where the boundaries overlap.

3. The water authority shall not
unreasonably refuse a request from such a city, town or public entity for a
distribution from the infrastructure fund pursuant to the provisions of this
section.

NRS 377B.180Annual report of city, town or other public entity in interlocal
agreement with water authority for distribution from infrastructure fund.If a water authority in a county whose
population is 700,000 or more has entered into an interlocal agreement to
provide a distribution from the infrastructure fund pursuant to NRS 377B.170 to a city or town located in the county
whose territory is not within the boundaries of the area served by the water
authority or to a public entity in the county which provides water or
wastewater services and which is not a member of the water authority, the city,
town or public entity shall transmit to the water authority on or before
December 15 of each year a report that describes:

1. The total distribution received by the
city, town or public entity during the preceding fiscal year from the
infrastructure fund pursuant to NRS 377B.170;

NRS 377B.190Money for payment of cost of project for which tax was imposed:
Issuance of bonds or other obligations; direct distribution from infrastructure
fund; authority of board of county commissioners or water authority.

1. Money for the payment of the cost of
one or more projects for which the board of county commissioners has imposed
all or a portion of the tax authorized pursuant to this chapter may be obtained
by the issuance of bonds and other securities as provided in this section, or,
subject to any pledges, liens and other contractual limitations made pursuant
to this chapter, may be obtained by direct distribution from the infrastructure
fund, or may be obtained both by the issuance of such securities and by such
direct distribution as determined by the board of county commissioners or, in a
county whose population is 700,000 or more and in which a water authority
exists, by the water authority.

2. The board of county commissioners of a
county whose population is less than 700,000 or of a county whose population is
700,000 or more and in which no water authority exists may, after the enactment
of an ordinance imposing a tax for infrastructure as authorized by NRS 377B.100, from time to time issue bonds and other
securities, which are general or special obligations of the county and which
may be secured as to principal and interest by a pledge authorized by this
chapter of the receipts from the taxes imposed by this chapter. The ordinance
authorizing the issuance of any bond or other security must describe the
purpose for which it was issued.

3. After the enactment of an ordinance
imposing a tax for infrastructure by the board of county commissioners of a
county whose population is 700,000 or more and in which a water authority
exists, the water authority or, if so provided in an interlocal agreement to
which the water authority is a party, one or more of the members of the water
authority, may from time to time issue bonds and other securities, which are
general or special obligations and which may be secured as to principal and
interest by a pledge authorized by this chapter of the receipts from the taxes
imposed by this chapter.

4. In a county whose population is 700,000
or more, no bonds or other securities may be issued pursuant to this section
which are payable from or secured by, in whole or in part, any revenue from a
tax enacted pursuant to this chapter to be collected after:

(a) The last day of the month in which the
Department determines that the total sum collected since the tax was first
imposed, exclusive of any penalties and interest, exceeds $2.3 billion; or

(b) June 30, 2025,

Ę whichever
occurs earlier, unless the board of county commissioners pursuant to subsection
4 of NRS 377B.100 has determined by an affirmative
vote of at least two-thirds of its members that the cessation of the tax is not
advisable.

NRS 377B.200Covenant or other provision to pledge and create lien upon tax
proceeds, revenue generated by project or proceeds of certain securities.

1. Each document providing for the issuance
of any bond or security issued pursuant to this chapter which is payable from
the receipts of the taxes imposed by this chapter or revenue generated by one
or more projects for which the board of county commissioners has imposed all or
a portion of the tax authorized pursuant to this chapter, may, in addition to
covenants and other provisions authorized in the Local Government Securities
Law, contain a covenant or other provision to pledge and create a lien upon the
receipts of the tax or the revenue generated by one or more projects for which
the board of county commissioners has imposed all or a portion of the tax
authorized pursuant to this chapter, or upon the proceeds of any bond or
security pending their application to defray the cost of one or more projects
for which the board of county commissioners has imposed all or a portion of the
tax authorized pursuant to this chapter, or any combination of the tax
proceeds, generated revenue or security proceeds, to secure the payment of any
bond or security issued pursuant to this chapter.

2. Any money pledged to the payment of
bonds or other securities pursuant to subsection 1 may be treated as pledged
revenues of the project for the purposes of subsection 3 of NRS 350.020.

NRS 377B.210Department required to disregard tax in determining amount of
security required for payment of other sales and use taxes under certain
circumstances.If a person has not
been habitually delinquent in the payment of any sales or use tax at any time
within the immediately preceding 3 years, the Department shall disregard the
amount of any tax due pursuant to this chapter when determining the amount of
any security it may require from that person for the payment of any sales or
use tax.